Wind energy is the fastest-growing electricity-generating technology. The wind energy targets set during the last decade have all been surpassed. New targets are proposed for 2010 and 2020, since the existing European Commission and European Wind Energy Association targets do not reflect the trends in the market. Climate change is a major challenge to sustainable development worldwide and is increasingly recognized by forward-looking political and business leaders. One of the tasks we are facing is a profound transformation of our energy system over the next few decades of replacing fossil fuels with renewable energies and dramatically increasing energy efficiency. This article reviews the progress made by wind energy in the last ten years, and discusses the potential of this technology in the European Union and Turkey for the future. The European experience has shown that wind energy today comprises a reliable and cost-effective technology with positive effects on the reduction of CO2 emissions. This study also shows that Turkey has more wind energy potential and existing wind-electricity-producing companies should be encouraged and supported by the government while new financing mechanisms are needed to promote investment in wind energy.